Gillette corp
bank of boston v belotti
Before the Massachusetts Supreme Court
In 1976, Massachusetts passed Massachusetts General Laws ch. 55 § 8,[12] which expanded the 1974 FECA amendment's prohibitions.[2][13] The new criminal statute disallowed the use of “corporate funds to purchase advertising to influence the outcome of referendum elections, unless the corporation’s business interests were directly involved.”[2]
That same year, Massachusetts proposed a constitutional amendment (to be voted upon in a referendum election) modifying income tax laws.[14] The First National Bank of Boston, New England Merchants National Bank, the Gillette Co., Digital Equipment Corp., and Wyman-Gordon[13] claimed that this amendment affected their business interests and that they should be allowed to spend corporate funds on relevant advertising.[14]The Massachusetts Attorney General's Office, applying Massachusetts General Laws. ch. 55 § 8, disagreed.[14]
In response, the corporations sued Massachusetts Attorney General Francis Bellotti, the Coalition for Tax Reform, and United Peoples, Inc., contending that Massachusetts General Law ch. 55 § 8 was unconstitutional because it violated their right to free speech.[14] The Supreme Judicial Court of Massachusetts heard The First National Bank of Boston & others v. Attorney General & others on June 8, 1976.[14]
On February 1, 1977, the Massachusetts Supreme Court ruled in favor of the defendants, stating that Massachusetts General Laws ch. 55 § 8 was constitutionally applied because of a failure to find a material affect on the corporations’ business interests.[14] The plaintiffs appealed the decision to the United States Supreme Court.[15]
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Some of Gillette's joint ventures included a 40 percent Gillette 60 percent Malaysian mini-plant operation that began production in 1970, and an Iranian manufacturing plant with 51 percent government ownership. The Iran plant was one of Gillette's largest and most modern factories until the Iranian Revolution of 1979 when Ayatollah Khomeini rose into power and American businesses were targeted as enemies of the new government, forcing Gillette to abandon the operation and withdraw from the country.[34]
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In 1989, Warren Buffett's Berkshire Hathaway purchased $600 million worth of Gillette convertible preferred shares. Buffett filled a vacant seat on the company's board and agreed not to sell his stake "except in a change of control or if insurance regulators force a sale of the stock in the event Gillette's financial condition falters", reducing the chances of a takeover.[59] During late 1989 and early 1990, Gillette launched the new product Sensor with a $175 million marketing campaign in 19 countries in North America and Western Europe.[60][61]
Early to mid-1990s
In 1990, Gillette attempted to purchase Wilkinson Sword's U.S. and non-European operations. The Department of Justice prevented the sale of Wilkinson's U.S. assets to prevent a significant reduction in competition by eliminating one of the top four blade suppliers when Gillette already controlled approximately half of the nation's razor market.[62][63] Gillette launched the Series line of men's grooming products, including scented shaving gels, deodorants, and skin-care items, in 1992.[64][65] The company's SensorExcel launched in Europe and Canada in 1993,[66] followed by the United Kingdom and United States in 1994.[67] In 1996, Gillette launched several new products for women and teenage boys, including the SensorExcel for Women, a moisturizer, a shaving gel, and a body spray.[68]
Beginning of the Razor Wars
The company launched the new shaving system Gillette Mach3 in 1998, challenging the twin-blade system which dominated the market by introducing a third blade. Gillette promoted the product, which took five years to develop and was protected by 35 patents, with a $300 million marketing campaign.[69][70] The Mach3 and replacement cartridges cost 35 percent more than the SensorExcel razor.[71] By 1999, Gillette was worth US$43 billion, and the brand value of Gillette was estimated to be worth US$16 billion. This equated to 37% of the company's value.[72] In 2000, Gillette's board fired CEO Michael Hawley; he was replaced by former Nabisco CEO James M. Kilts in early 2001.[73][74] In 2003, Schick-Wilkinson Sword introduced the Quattro, a four-blade shaving system, increasing the company's market share to 17 percent. Gillette claimed the Quattro infringed on the Mach3 patents.[75] Gillette's efforts were unsuccessful, but the company maintained approximately two-thirds of the global wet-razor market as of mid-2005.[76]
Procter & Gamble acquisition to present
In 2005, Procter & Gamble announced plans to acquire Gillette for more than $50 billion, which would position P&G as the world's largest consumer products company.[77] The deal was approved by the Federal Trade Commission.[78][79] Gillette introduced the world's first 5-blade razor, called the Fusion, during 2005–2006, marking the company's first launch after the P&G acquisition.[80] By 2010, the Fusion was the world's highest selling blade and razor brand, reaching $1 billion in annual sales faster than any prior P&G product.[81] Gillette's Fusion ProSeries skincare line, launched in 2010, included a thermal facial scrub, a face wash, a lotion, and a moisturizer with sunscreen.[82][83] The Gillette Fusion ProGlide Styler for facial hair grooming was introduced in 2012, with André 3000, Gael García Bernal, and Adrien Brody serving as brand ambassadors.[84][85]
In 2015, the company launched a subscription service called Gillette Shave Club[note 1] and later filed a lawsuit against Dollar Shave Club for patent infringement.[88][89] The Dollar Shave Club lawsuit was criticized for revealing flaws in Gillette's own patents[90] and as a perceived attempt to drive away an upstart competitor; the lawsuit was dropped two months later after Dollar Shave Club filed a countersuit.[91]
In 2019, the company partnered with TerraCycle to create a U.S. recycling program for blades, razors, and packaging for any brand.[92] In 2020, Gillette announced a commitment to reduce the use of virgin (unrecycled) plastics by 50 percent by 2030 and maintain zero waste to landfill status across all plants.[93]